The New York-based seller of soap-filled sponges has been taken to court by CBS Radio for failing to pay more than $366,000 for radio ads, according to papers filed with the state Supreme Court in Manhattan. CBS Radio becomes the latest in a growing list of outfits waging a legal war against SpongeTech. So far, the company has been sued locally for more than $1 million in overdue bills by the likes of Citi Field, Madison Square Garden and the New York Giants, reported the NY Post.
The company has also grabbed the attention of the SEC, which last year launched an investigation into possible securities laws violations.
CBS Radio said SpongeTech admitted last month that it owed $366,231 for ads provided since last September. The filing also includes an “affidavit of confession” signed by SpongeTech Comptroller Mark Kranczer and promising to pay the owed cash based on an agreed-upon payment schedule.
According to the court document, SpongeTech defaulted on two payments since the affidavit was signed, bringing the total amount owed to $383,112, including interest and other costs.
SpongeTech’s CFO Steve Moskowitz denied owing CBS Radio money and said he “never saw the suit” and is “not aware of the suit,” said the story.